Redevelopment and Structural Repairs

Can the developer insist on higher approval percentage than the Act requires?

No, the developer cannot insist on a higher approval percentage than what is required by the Act.

No, the developer cannot insist on a higher approval percentage than what is required by the Act.

Written By: GatePal Analyst

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Short Answer

No, the developer cannot insist on a higher approval percentage than what is required by the Act.

Detailed Explanation

Section 63 of the Gujarat Cooperative Societies Act, 1961 states that for any redevelopment or structural repairs, the consent of at least two-thirds of the members is necessary. This means that the developer must obtain approval from a minimum of two-thirds of the society members for any redevelopment or structural repair project. The Act clearly specifies this percentage, and the developer cannot demand a higher approval percentage.

In practice, this provision ensures that the decision-making process in cooperative societies is fair and democratic. By requiring a two-thirds majority for approval, the Act aims to protect the interests of all society members and prevent any individual or group from exerting undue influence over redevelopment or repair projects.

Real-world Scenarios

  • Scenario 1: A developer proposes a redevelopment project to a cooperative society consisting of 50 members. According to Section 63 of the Act, the developer must obtain the approval of at least 34 members (two-thirds of 50) for the project to proceed.

  • Scenario 2: In another society with 100 members, the developer still needs the consent of at least 67 members (two-thirds of 100) for any redevelopment or repair work.

Step-by-step process:

  • The developer presents the redevelopment or repair proposal to the society.

  • The society members vote on the proposal, and at least two-thirds must approve it for the project to move forward.

  • If the required approval percentage is not met, the developer cannot proceed with the project without the necessary consent.

Reference

  • Section 63 of the Gujarat Cooperative Societies Act, 1961: Official PDF

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